Majority of Irish CEOs see disruption as opportunity for their business, says KPMG

A new survey of Irish CEOs by KPMG has found that 90 per cent see disruption as a growth opportunity for their business, not a threat.

KPMG’s CEO Outlook for 2017 looks at CEO sentiment about the local and global economy; the opportunities provided by disruption and what CEOs are doing to ensure they have the skills to deliver in a changing world.

The study found that 97 per cent of Irish CEOs want their own business to be the disruptor in their sector, while four in ten CEOs believe disruption in their sector will eliminate or weaken traditional leaders. In addition, new technology will have the biggest impact on company growth over the next three years while attracting new talent will be the biggest technology challenge for 37 per cent of CEOs.

Shaun Murphy, Managing Partner of KPMG said: “Irish CEOs are optimistic about the future of their own business, despite risks to the global economy. In the face of the uncertainty of Brexit and the potential threat of protectionism, Irish CEOs are looking to use technology to create new opportunities and ensure that they are the disruptors, not the disrupted.

“Operating in a more complex and rapidly changing environment is challenging CEOs like never before, with an expanding breadth of skills and expertise needed to lead their organisations. CEOs need to stimulate innovation, oversee new types of customer relationships, manage heightened reputational risks and make bold decisions about their investments in technology.”

Key results

87 per cent of Irish CEOs say their organisation is placing greater importance on trust, values and culture in order to sustain its long-term future.

73 per cent are increasing penetration in established markets, making this the top priority for growth with Germany (77 per cent) as the most targeted market.

43 per cent expect their number of employees to increase by more than 6 per cent in the next three years.

60 per cent believe global political uncertainty is having a greater impact on their business than previously seen.

84 per cent are confident about growth in the Irish economy, while the vast majority (93 per cent) are confident of growth in their industry.

The number of Irish CEOs who expect to increase headcount over the next three years has also increased year on year from 32 to 43 per cent.

Reputational and brand risk has risen in importance for Irish CEOs to become the second highest risk, after new technology.

“CEOs are focusing on their core strengths while also transforming the way they create value. Trust and brand reputation are also increasingly important in this time of disruption, with six out of ten Irish CEOs believing that levels of trust in business will stay the same or decline in the next three years,” added Murphy.

Other results

All Irish CEOs surveyed say they are concerned about the data on which they are basing decisions.

87 per cent believe they are fully prepared for a cyber event – up from 24 per cent in 2016. Over half (56 per cent) report “cyber fatigue” in their business.

CEOs in the Republic of Ireland are significantly more optimistic about economic growth (84 per cent) than those in Northern Ireland (40 per cent).

60 per cent of Irish CEOs believe that levels of trust in business will stay the same or decline in the next 3 years.

93 per cent of Irish CEOs are more confident about their industry’s prospects for growth than they are about the global economy (40 per cent).